Colombo stock market rebounds to 4-month high

• The bullish run at the Colombo stock market continued for the 10th consecutive day as it raced back to 4-month high yesterday with healthy turnover

The ASPI was 2.4% and S&PSL20 by 4.4%. Turnover was Rs. 4.5 billion involving 115.8 million shares.

Asia Securities said the market continued its rally, with the indices moving upwards throughout the session. Turnover remained near its highest levels in months on the back of strong retail and HNI activity.

While LIOC has dominated activity over the past few sessions, EXPO gained momentum yesterday to close as the highest contributor to turnover. The market has witnessed a pickup in activity across sectors; however, this gained momentum with counters across the board posting sharp gains. Notably, MELS, JKH, HAYL, CIC and ACL recorded strong volumes with HAYL gaining 17.5% and ACL up 12.0%. EXPO was the highest contributor to the ASPI (+44 points) followed by HAYL (43 points). Market breadth was positive with 127 counters gaining and 69 declining.

Asia also said foreigners recorded a net outflow of Rs. 268.9 million with participation at 5.5% of turnover (previous day 3.0%). Net foreign buying topped in CCS at Rs. 12.7 million while selling topped in MELS at Rs. 156.7 million.

First Capital said the Bourse continued winning momentum for the 10th consecutive session while recording the highest intraday gain in 1 month as optimistic investors set on a buying spree throughout the trading session.

After the President’s comment on local debt restructuring, investors started to look for alternative investment opportunities over fixed income. As a result, retailers gathered confidence to reinvest in the equities which led the market to continuously trade positively and ended the day at 8,706 gaining 206 points. Although, turnover was relatively lower compared to Tuesday, it was 150% higher than monthly average turnover of Rs. 1.8 billion. 

Transportation solely contributed 30% to the market turnover, mainly led by EXPO followed by Capital Goods (19%). Despite a bullish run, foreign investors turned net sellers while recording moderate participation.

NDB Securities said high net worth and institutional investor participation was noted in Ceylon Tobacco Company, John Keells Holdings and Melstacorp. Mixed interest was observed in Expolanka

Holdings, Lanka IOC and Hayleys whilst retail interest was noted in Browns Investments, Kotagala Plantations and LOLC Finance.

Transportation sector was the top contributor to the market turnover (due to Expolanka Holdings) whilst the sector index gained 12.03%. The share price of Expolanka Holdings increased by Rs. 23.50 (12.04%) to close at Rs. 218.75.

The Capital Goods sector was the second highest contributor to the market turnover (due to John Keells Holdings and Hayleys) whilst the sector index increased by 4.57%. The share price of John Keells Holdings recorded a gain of Rs. 2.75 (2.31%) to close at Rs. 122. The share price of Hayleys appreciated by Rs. 15.85 (17.53%) to close at Rs. 106.25.

Lanka IOC and Melstacorp were also included amongst the top turnover contributors. The share price of Lanka IOC gained Rs. 6 (4.32%) to close at Rs. 144.75. The share price of Melstacorp moved up by Rs. 2.70 (5.74%) to close at Rs. 49.70.